Sales and Use Tax Annotations

Annotation 435.0650

(c) MISCELLANEOUS OPERATIONS

435.0650Cutting Lumber. When a retailer sells lumber to its customers and charges them for cutting to size, such charge constitutes taxable fabrication labor. Thus, the total amount of the sale price of the lumber, including charges for the fabrication labor, is subject to the tax. Additionally, if the customers furnish lumber to be cut to size, the retailer's charges for cutting the customers' lumber are taxable as sales of fabrication labor. (Section 6006(b).) 2/6/96.